Using Market Data | Robinhood

Using Market Data

Market price

A security’s market price refers to the price of the most recent trade for that security. Depending on the time of day, Robinhood partners either Nasdaq Last Sale or BOATS (8 PM-4 AM ET) to get the real-time last sale prices.

Note

With more liquidity than any other US exchange, the Nasdaq is one of the most accurate sources for real-time trade data.

You can find consolidated real-time market data by selecting Market Price on the trade entry screen for share-based orders. Consolidated real-time market data includes the last sale, best bid, and best ask price across all US exchanges. Each quote includes the price, quantity of shares, and the exchange on which it’s available.

Real-time market data provides insightful information into the supply and demand for a stock just before you place a trade.

Note

Federal regulations require that your orders be filled at the National Best Bid or Offer (NBBO), which is the best available bid (for sell orders) or the best available ask (for buy orders) at the time your trade is executed.

Bid/ask spread

When setting the limit price for a limit order, you may see a bid and ask. This quote may be a Nasdaq Bid and Ask, or QBBO, and if so, will be labeled accordingly. During overnight hours, quotes will come from BOATS (Blue Ocean Alternative Trading System).

To view a consolidated quote, select the select ? (the question mark) next to bid and ask. We also show you a consolidated quote in the Order Summary, before you submit an order.

  • The bid shows the highest price a buyer is willing to pay, the associated number of shares at that price, and the specific stock exchange that the quote comes from
  • The ask represents the best offer from a seller on the market

You’ll notice that the bid price is almost always lower than the ask price. The difference between the bid and ask price is called the bid/ask spread. The bid/ask spread is an indication of supply and demand:

  • A narrow bid/ask spread typically indicates a high demand
  • A wide bid/ask spread generally means that fewer people are trading that security

Be sure to consider the bid/ask spread when setting the limit price:

  • If you’re placing an order to buy, and you want your order to more likely execute, you can set it at the ask price or above
  • If you’re placing an order to sell, and you want your order to execute more quickly, you can set it at the bid or below

Disclosures

There are additional, unique risks with trading outside of regular market hours that you should be aware of before making an investment decision, including the risk of lower liquidity, increased volatility, greater spreads, and pricing uncertainty.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Credit card products are offered by Robinhood Credit, Inc. (“RCT“) (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Securities products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. Cryptocurrencies held in RHC accounts are not covered by FDIC or SIPC protections and are not regulated by FINRA. RHY products are not subject to SIPC coverage but funds held in the Robinhood Money spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

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